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Dan Zanger, A Pure Wyckoff Mark Up Trader

By: readtheticker | Wednesday, December 26, 2012

Dan Zanger bio is incredible.
He turned $10,775 into $18 million between June 1998 and December 1999, he
is the world record holder for the largest percent change for a personal portfolio
for a 12-month period of time.

Dan Zanger a working man turned professional trader. Transforming himself
from a 'pool builder' to very successful high roller trader and hedge fund
manager.

Let's review how he does it.

Note: readtheticker.com has no association with Dan Zanger or any of his services.
We are only passing comment to his trading method as it resembles the Wyckoff
logic approach.

Book2: Jesse Livermore book called 'Reminiscences of a Stock Operator'.

The market is design to take your cash therefore you must learn the game.

When you have a winner the market tries to shake you out of your position.

Expensive stocks (more than $50) better to make money with than cheap stocks
(under $30).

Find market leaders that are dominate in their space with quarter over
quarter earnings increases that produce: new services, new products, new
management just something new.

This is the way of the CANSLIM method developed by William J O'Neal.

Comments

To take nothing away from Dan Zanger, the above video is from a interview
that is designed to promote his services. Some points to understand.

The years which Dan Ranger made fantastic returns are 1998 to 1999 when
the Nasdaq stock bubble was in full throttle. You could by 50,000 shares
in Amazon as a day trade with margin at ease. It was a special time, and
returns were abundant for all. There has not been a time since equal to
these years.

Company earnings can be gamed. The business can sell some plant, a business
or a building to generate short term improved earnings. It is best to consider
revenue, positive cash growth and retained earnings growth to confirm the
quality of the earnings reported.

A bull market is required to trade the Dan Zanger way. A bull market is
associated with positive economy and increased standard of living and general
way of life. A bear market is associated with slow economic growth, recession
and or depression. It would be very difficult to find spectacular earnings
growth in a bear market. In the great depression of 1930's 70% of all stocks
went down, that means 30% went up. Thus you never now were the institution
capital may go.

Earnings are not the only motivation. A closer look at Dan Zanger trades
suggest commodity markets that show strong bullish trends are fair game
as well.

Market leaders show themselves by having strong relative strength (Alpha)
than the wider market and/or sector.

Dan likes to buy stocks that move from say $50 to $100. This means Dan
is a Wyckoff Mark Up phase trader. He finds stocks that offer PURE mark
up of the best quality.

Dan Zanger states that he follows the market leaders that dominate in
their field or space. This means he follows sectors and the best stocks
in the sectors. This is also a standard
Wyckoff stock selection method. Wyckoff logic suggests the buying well
known widely followed and much loved companies are better than those that
are not or a obscure. In the end stocks that a fueled by increase institutional
ownership are attractive to both Wyckoff and Dan Zanger.

Dan Zanger states that he likes to see a base pattern for the stock to
break out of. This is a Wyckoff logic theory of price breaking out of an accumulation
phase into the mark up phase that will result in higher prices. The
Wyckoff accumulation phase is critical as is the phase that allows the
market whales to accumulate stock float to eventually sell at higher prices.

Best Points

Need not be in the market all the time, trade quality mark ups not quantity
of mark ups.

A powerful mark up is born out of a base or otherwise known as Wyckoff
accumulation phase.

Even though Dan Zanger has stated he is not a fan of indicators, and we dont
blame him, he has not seen our Wyckoff logic approach. Tools like RTT Market
Timer, RTTTrendStatus, RTTTrendPower and RTTTrendPowerOBV. Readers should be
aware that continuation patterns are not the only way to trade a powerful mark
up price trend, for example here is RTTTrendPowerOBV working
on Apple Inc.

Please note that Apple Inc (AAPL) is an extraordinary example of price mark
up. Apple Inc went from $70 to $700+ (700%) on the news of multiple unique
new product announcements. Apple Inc in effect had multiple impulse waves of
price advancement. It may not be the next year market leader, never fear the
stock market always seems to find another darling to chase to higher prices.

We are financial market enthusiasts using methods expressed by the Gann, Hurst
and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides
online stock and index charts with commentary. We are not brokers, bankers,
financial planners, hedge fund traders or investment advisors, we are private
investors.

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presented in this content. This material is not presented to be a recommendation
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advice'. Readtheticker.com members may have a position in any company or security
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